The policy promises a right to timely clearances and allows self-certification, and the time limits for clearances have been specified in the Act itself.
Chief Minister K Chandrashekar Rao on Thursday unveiled the much-talked-about new industrial policy for Telangana.
Introducing the Telangana State Industrial Project Approval And Self Certification System (TS-iPASS) Policy Framework for the State of Telangana (2014) in the State Legislative Assembly, the Chief Minister described the new policy as a first-of-kind in the country.
The policy promises a right to timely clearances (claimed to be a first in the world) and allows self-certification (for the first time in India), and, for the first time, the time limits for clearances have been specified in the Act itself rather than in the rules.
Again in a first in the country, the policy assures a 15-day clearance for mega projects, with a penal provision if departments delay clearances.
A single Common Application Form has been prescribed, and the applicant need not go to different departments. This will be done by a Nodal Officer, like in the Singapore Economic Development Board (EDB). A grievance redressal mechanism will also be created.
However, the applicant will be liable for action if the self-certification is false. There will be minimum inspection and maximum facilitation, the Chief Minster said.
To address the pollution concerns, the industries have been classified in four categories - Green, Orange, Red 1 and Red 2. Only the industries in the Red 2 category would have to go to the Government of India. Therefore, almost 90% of applications will be within the purview of State Government.
The new policy promises zero graft and zero tolerance to corruption, and a peaceful, secure and progressive business regulatory environment. The industrialization will be inclusive and facilitate social equality, the CM claimed.
The State Government has identified 14 thrust areas. They are Life Sciences including biotechnology and pharma; IT Hardware including medical devices and communications; aviation, aero-space and defence; food processing and nutrition products; automobiles, farm equipment and transport vehicles; textiles, leather and apparel and related products; plastics and polymers; fast moving consumer goods (FMCG) and domestic appliances; engineering and capital goods; gems and jewellery; waste management and green technologies; renewable energy and solar parks; mineral and wood based industries; and transportation and logistics.
The new industrial policy offers attractive incentives to small and micro industries, and for ancillary- and vendor-development linked to major industries; a special package for SC/ST/Women/PH initiatives; direct loans to SC/ST and PH initiatives; marketing assistance to the MSME sector; a program for traditional arts and handicrafts; and plug-and-play infrastructure in industrial parks.
As much as 10% of water has been earmarked for industry. The State Government has also assured transparent and equitable land allotment in industrial parks.
The policy also promises industrial housing as part of industrial park development. The industrial parks will be given the status of local bodies.
Skill development activities will be taken up in industrial parks in collaboration with industry. There will be a rationalization of taxes to encourage local industry, and all obsolete laws that impact industrialization will be reviewed. Industrial corridors and district industry parks will be established to encourage the growth of industry across the State.
Through the new industrial policy, the State Government has set specific targets for 2014-15. They include a new pharma city and a new chemical city with well-developed infrastructure including waste management; development of the Hyderabad-Warangal industrial corridor; development of Warangal as the textile hub of Telangana; food processing and seed production initiatives; an exclusive aerospace and defence policy; mini industrial townships along with industrial parks; direct loans to Dalit entrepreneurs; creation of a venture capital / angel fund; inter-state VAT rationalization on industrial inputs and outputs; and review and reform of all old industry sector regulations, including the labour laws.
Stating that Rs 1,165.74 crores have been earmarked for the Industries and Commerce Department this year, the Chief Minister said the amount was much higher than the Rs 953.59 crores allocated for the department in the combined state of Andhra Pradesh for 2013-14.
"The previous government had incentive arrears of Rs. 685 crores. Rs. 580 crores of this will be cleared in this year," he said.
Promising Rs 832.74 crores in incentives during 2014-15, the Chief Minster assured that there would be no backlog of incentives for SC/ST entrepreneurs.
The government has allocated Rs. 100 crores to TSIIC for infrastructure development.
"This is the first time that such a huge budget is being given to TSIIC," the CM said. (INN)